If a country has a trade surplus then
a. S > I and Y > C + I + G.
b. S > I and Y < C + I + G.
c. S < I and Y > C + I + G.
d. S < I and Y < C + I + G.
a
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If the economy is in a recession, the inflation rate is ________ it would be at potential GDP. Other things equal, if the government implemented an expansionary fiscal policy, the inflation rate would ________
A) greater than; remain constant B) greater than; decrease C) less than; increase D) less than; remain constant
The deviation of unemployment from its natural rate is called
a. the economic rate of unemployment. b. cyclical unemployment. c. frictional unemployment. d. structural unemployment.
In an open economy with a given level of real interest rates and risk, an increase in real interest rates abroad will ________ capital inflows and ________ the equilibrium domestic real interest rate.
A. decrease; increase B. decrease; decrease C. increase; decrease D. increase; increase
Refer to the given data. If the firm is hiring workers under purely competitive conditions at a wage rate of $10, it will employ:
A. 2 workers.
B. 3 workers.
C. 4 workers.
D. 5 workers.